Skip to main content

tv   Countdown to the Closing Bell  FOX Business  August 22, 2013 3:00pm-4:01pm EDT

3:00 pm
charlie gasparino here in our new york studios rias been working the phones and talking resources. and nicole petallides along with the traders on the floor of the new york stock exchange where of course trading has not been interrupted. that is a totally different exchange. we have sanders met on the floor of the cme which is huge volumes and electronic trading. adam shapiro, we begin with you. when will the testing began? >> the testing started at 230, but we don't have any inclination from nasdaq. it will not make a statement even though their pr people right on the other side of the door. the law say how that's going. they originally hoped to have trading resumed at 2200 they're not going to make that deadline. they have not pushed it back, as you pointed out, to 3:25 p.m. no word on how the trade has been going. again, 2200 roughly securities
3:01 pm
listed. over five and half trillion. none of them can be traded until the nasdaq puts up the official word that they're going to go. as of right now the push the trading time back. liz: let us know when those people come out from behind that trust us. is the kind of reporter will be banging on the door. again, for now, 3:25 p.m. eastern time. want to get that rich edson and washington d.c. speaking to nasdaq listed ceos of billion medium-sized companies. about four out of seven are telling me they absolutely suspect that there is something nefarious. simply because how could it not -- paired with the problem the other day. of course we don't know yet because the nasdaq is not said anything. what is the sec looking at? >> we don't know that yet either with the sec is doing right now is essentially monitoring the situation. they did convene a conference
3:02 pm
call according to the sec right after this started. stayed on the phone while they tried working out the problems. the treasury department -- remember, treasury, the secretary is the head of the financial stability oversight council. that was created by dodd-frank and responsible for making sure that the market is performing a carry. basically financial security. they have been notified of this. the treasury secretary has been briefed and is being updated out on the west coast, expected to speak about an hour. we will be monitoring that as well. the fbi in new york is aware. no comment beyond that, but when you talk about not understanding what is behind this, you still have this drum beat that is becoming louder for the government to get more involved when it comes to server security, both when it comes to theft of intellectual property and making sure that the nation's infrastructure is safe. you better believe that the nasdaq is counted among the safety of the infrastructure. we have calls out to congress,
3:03 pm
but they're out for the next two and a half weeks. this is the type of thing that you can certainly expect some type of investigation on or few hearings if this is found out to be something and somebody acted to bring this down. liz: again, not to speculate. we can at least go down this road because it's not a stretch. i am hearing from very smart ceos in silicon valley who say this is a massive issue and has been for more than three years. the u.s. military would come to speak to some of the silicon valley companies. >> exactly. and not just hearing it. your hearing in all other types of nation's infrastructure. it's not just hackers attempting to go in and take company secrets and profit. the concern in washington has always been about infrastructure and questions as to whether were doing enough. we don't know the reason behind it. liz: team coverage continues. nicole petallides on the floor of the new york stock exchange. everything is trading just fine.
3:04 pm
we want to make that clear. >> reporter: that's absolutely right. the new york stock exchange is functionally perfect. nasdaq listed stocks that also trade here as a secondary market , some of those cases are not trading because here at the new york stock exchange, that direct edge, all of these exchanges and other places to trade -- liz: partial trading has begun. partial trading has begun. although, as you see with the composite on this chart, right after 12:20 p.m. eastern, it is still a flat line. when we say partial, we mean that all the a certain number of stocks happen. to reset the story shortly after 12:15 p.m. eastern the nasdaq started to notice some strange behavior. their electronic trading system began shutting down trades of certain stocks that started to look suspicious. says -- specifically it trade in
3:05 pm
young. they just pulled the plug and said with a second. we're hearing right now that partial trading has resumed. and so therefore we're just going to sit here and watch to see if this line. but it's still absolutely flat. >> we're doing a great disservice by suggesting trading in nasdaq stocks. there is no trading. they are trading. they are trading off of the nasdaq exchange. you cannot trade these stocks on the nasdaq exchange. apple, facebook, they can trade other places. so let's just be clear. this is and nasdaq listed stock. cannot trade on the nasdaq. that is a whole other can of worms. we have a market structure. 40,000. maybe 40 exchanges out there which compete with each other to trade. that means a kind of don't know what pressure digging. the other side of the story is the cyber security story.
3:06 pm
they thwart almost every day an attempt to break into their system. so this is a huge story. if a hacker was successful in shutting down one of the primary markets and the united states. liz: i'm looking at intel. it's not moving. >> where you getting that? liz: i'm looking at nasdaq. >> you are getting the print from nasdaq. liz: but that's the issue. >> no, it's not. it is the issue in the sense that you don't know what your prices. liz: that's a major issue. nicole, what are you seeing and hearing? >> the issues that will be trading, when you will really see the nasdaq trading, more than 3:25 p.m. they're conducting testing. you talked about partial trading beginning. the whole idea here is that the nasdaq reputation has been put at stake. the backup system, a technical
3:07 pm
glitch with no further information for over two hours. granted, it's a beautiful thing that the exchange's works nicely together. listen. it will play nicely. we also will not treat any of your shares for intel microsoft. all of the shares. the question is, what is this happen? when will it happen again? tomorrow, never? liz: at trading floor, the world's largest futures and commodities trading floor and a mass of electronic system is the chicago mercantile exchange were sandra smith is. talk about what they're saying about this. >> obviously as you know, there will always be traders mauling about speculating on what caused the outage. that is certainly the case. what i can tell you is that this cme issued a response directly following the outage saying that the market, the product was not affected or impacted was the word during the trading glitch.
3:08 pm
may i remind you that we have an outage with the cbot about three months ago that did have ripple effects in the markets. there is concern on a daily basis about these potential outages and what is causing them that's something that the traders are living with. in fact a small bunch of us were looking at an intraday chart. the nasdaq futures trader right here. and we did see that we sold off the lows of the session. and we saw everything resume trading. the fear gauges down. so there is a call down here. it really stayed that way. >> when you have competing markets it could trade elsewhere. you don't need the nasdaq open for these stocks to trade. liz: the fox business translator. as we do this and getting an e-mail from charles payne who is correctly reported that trading in a a.m. the, atlantic america corp has very slowly but surely begun.
3:09 pm
very small takes. trading volume. >> on the nasdaq. liz: correct. that is what we're talking about. a a.m. he is what is trading. it is certainly not an intel corporation cool, but all other securities, were still waiting for most of them. 3:25 p.m. >> i would say this, there are two stories here. obviously this ever security story. if this was some sort of hacker, a big problem. there's the other security that the sec will not address, the other story which is that our markets are convoluted. nasdaq traded stocks are trading elsewhere. we don't know exactly what those prices are. it's going on as we speak. that's why these traders, most of them could not care less about the average investor, are very call right now. the average investor who does not know exactly what they're getting, at what price.
3:10 pm
liz: let's get a trader down at the new york stock exchange. a real live one, not electronic. >> and one that does care about individual investors. >> please go ahead. >> clearly the technology glitch will affect markets across the board. even though this is just centralized by nasdaq, the investor sentiment will be affected by this. multiple instances. multiple instances of this, and this is going to get the ball rolling as to how technology has outgrown the rules and the needs to be all revamp of the system. clearly we have had issues before. having humans here to fix things quickly is what is the most important thing. as you were saying, i disagree. you're saying that some of these are trading in the dark. they halted trading across the board. >> a stock in trade anywhere. it does not have to trade at the new york stock exchange.
3:11 pm
i'm just saying, you could trade a stock. you can trade. >> but they are not trading. it is halted on the primary markets. >> on the primary market. suppose you're right each rated have a bunch of orders of facebook or when this went down. your telling can't go to a dark pool and get it done. >> they're not treating them that guard pools. if anything, they're hedging his bets. >> you should be able to trade anywhere in the world by the way, you should be able to traded on the goldman trading desk. that's my main point. you can trade these things away from public markets. liz: but the average investor out there, the retail investor is somebody who is usually trading in going through these bigger exchanges. you look at this. i am reaching out to ceos all
3:12 pm
over the place. mostly silicon valley. they're telling me they have not been contacted. until the not have a comment. we have been in contact with them. of course there were one of the first weird trades that started to concern the nasdaq. the rest of them have not received anything. i have just been getting something from the cnr does not wish to be named. finally just now. 3:12 p.m. eastern, three full hours they have not heard from the nasdaq. twenty-first century fox. we and nasdaq listed. >> have we even begin to call over three dozen companies? by the way, we are not able to trade your shares today here at the nasdaq because of a technical glitch. i mean, if you're so worried about fixing it. liz: something of the cme in chicago. >> adjust really truly, standing on the trading floor, have to
3:13 pm
respond to this suggestion, as much as i love the guy, suggesting that the best interest of the individual investor does not lie with the east changes. it absolutely does. electronic trading brought the liquidity to these markets that improved the price that the individual investor gets. it's absolutely absurd teeseven a little more of a debate. read on of the execution. >> you can't deny that liquidity has been improved. you can't deny. >> liquidity -- by the way, wasn't there? liz: could we please put up nasdaq to so that we can have a live feed and seed? they have said that partial trading began. it really does not look like it at the moment. here it is, the nasdaq composite. there is not a lot on the nasdaq . jeffrey grossman, you're at the nymex. >> yes, i am. liz: from your perspective on
3:14 pm
energy trading, what are you hearing from traders? >> we had business as usual today. a glitch. we looked. again, as a person and exchange, for the floor traders, a problem with electronic trading. we have always felt that there is too much reliance. whenever this goes down no one can do anything. the human element has been taken out. desert. a lot of advances. are not arguing about volume. some of the liquidity and transparency, but whenever you take that human element, the possibility of the back door being worked in there. or an attack. listen. i wish to turn the clock back. i was very happy when it was just normal pitch rating. liz: it's all very nice. the intercontinental exchange has taken over. sure, he was going to remain, but you know there will be
3:15 pm
layoffs. he's a big electronic trading guy. it's very important to have the human voice so that when the ghosts in the machine starts to take over, you guys say the day. >> we use the analogy before about autopilot. you want to have the pilot in the cockpit. when you hit turbulence, when you land and take off you want in there. to touch on a point the said before, i could tell you some executives that are on two sides of the fence. the oracle executives are happy they switched. the twitter executives are watching st., where she will star ipo when we come public? liz: why don't they start their own exchange? now want to go to a trader at the cme. long time, heavily experienced. i no you're rolling your eyes and saying this does not surprise me. what is surprising is that there is not really been an indication of what the causes. >> if you'll allow me to my want to comment on this in two ways.
3:16 pm
as someone who traded in the pits back there and now trades electronically, i'm going to side with sandra. we had something when it was all live pitch trading, we were not held to prices. prices were wider than they should be. and this happened more than once a week. so liquidity has improved. price discovery has improved. the electronic trading. but having said that, these instances are opportunities to say that humanity or human trading might be a decent backup for the improvements that have been made electronically. liz: imagine that. i want to jump. >> i just had a good source point out that the spiders are trading on the new york stock exchange. there has to be nasdaq stock in the spiders. liz: there are. >> out of reno if the print is inaccurate. liz: how could it be? >> she should be talking to the new york stock exchange and ask
3:17 pm
them, just make sure they are trading. how could they be reflecting true value? and this source tell me that some of these stocks could trade off the exchange. but the price is what the nasdaq. the nasdaq price. i think the new york stock exchange, her right now reflecting a thing close to true value? well, what is in the s&p 500? liz: a huge part. see if you can run into somebody on that issue. we have to take a break. again, we had just about seven minutes away from what the nasdaq is said would be a resumption of trading after a massive technical problem that they're calling a flash freeze. we are staying on this huge story about today's dramatic news on the nasdaq. what it means for you, ceos are watching, have affects trading. the issues charlie gasparino just brought up, and whether it raises new red flags about the
3:18 pm
entire trading system. as you can see, nasdaq composite is flat. live cameras right outside. stay tuned. don't go away. [ male announcer ] these days, a small business can save by sharing.
3:19 pm
like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this wkend? no. [ male announcer ] share more. save more. at&t mobile share for business. ♪
3:20 pm
at&t mobile share for business. this man is about to be the millionth customer. would you mind if i go ahead oyou? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank does't think you're special anymore, you need an ally. ally bank. your money needs an ally.
3:21 pm
♪ liz: we are now less than four
3:22 pm
minutes away from what the nasdaq has said would be a resumption of trade after more than three full hours of an outage said they are calling the flash freeze. full team coverage on this breaking story. adam shapiro outside the nasdaq. rich edson in washington d.c. where he is following the sec investigation. charlie gasparino has been working the phones talking to sources. nicole was on the floor of the new york stock exchange were trading has not been interrupted. >> i'm actually looking at a couple of things. number one, watching the dow jones industrials and the s&p 500 as well as the nasdaq composite index. it has not moved in three hours. the dow jones industrials and the s&p 500 have components within the such as microsoft and intel, cisco. have been talking. talking about the spider. he was checking on that. rita able to find anything out? >> nasdaq traders are not
3:23 pm
trading. the health care, the oil and things like that, they are trading. >> so the nasdaq spiders' which we were checking on. liz: how about the s&p 500. >> the s&p 500 spiders. >> the s&p 500 spiders, i would imagine they are. liz: but the nasdaq stocks within them. >> well, that would be for the dow jones industrials as well. the dow components. liz: my point. thank you for bringing this up. intel is the nasdaq traded stock, but it is in the dow jones industrials, the same with cisco. if we put up cisco and intel, you would see that they are not trading. >> bigger issue. did the small investor get hosed? >> if the dow jones industrials is up 62 points right now not including intel and cisco. >> by the way, talk about
3:24 pm
microsoft cannot talk about and tell and cisco. they are weighted. 1% plus. it's a weighted average. those three names are not trading. >> you don't generally buy the dow jones. by the s and p. liz: one minute remaining before we are expecting to see trading once again. >> we will be trading. in the meantime the question has to go to the new york stock exchange, what will they do for people who basically bought the spider. but it at a different price. how would they be able to price this thing? they're is a chance here, a very big possibility that the small investor got hosed on this. but something that does not reflect the real price because remember, all of these nasdaq stocks are in the s&p 500. we have a call out to the new york stock exchange. there will be back to me. liz: we are now 15 seconds away
3:25 pm
from what the nasdaq at promised would be the start again of trading after what can only be described as a massive trading glitch. they're calling it a flash freeze. we're looking live. as you know, 100 stocks. more than 2,200 stocks trading. here we go. let's just watch it. some see anything just yet. they tried to do limited trading just about ten minutes after the hour. now we see that the nasdaq is up 31 points at the moment. let's keep in mind, we also have the volatility index which is down. so that means that there is not too much fear at the moment in the market. just keeping an eye on this. microsoft is trading once again. up 2%. let me look at intel. intel was up a fraction. yah hoo was one of the original stocks that was having problematic trades. in all of the shortly after noon eastern.
3:26 pm
intel fighting back. yahoo up nearly 3%. i want to look. here's why. they came out with fantastic numbers. earnings this morning. there were having a great day, up 11%. it appears they are continuing. up about 11 and a half%. the health food conglomerate. they're holding on to some of the gains of the moment. seeing gains of about one and a half. looking decent. just pulling out nasdaq names. up under%. the one -- hold on. as we look to some of these names, cycled through some of the leaders and lacquers. again, it appears that trading has once again begun with the nasdaq composite up about 30 points. could we see some of the leaders and lighters? here we go. the list of stocks.
3:27 pm
up along with applied materials. ebay. down at the moment. here are some of the listed stocks that are quite popular among a lot of our viewers. nicole petallides to what are you seeing? again, charlie gasparino made an excellent point. they include names like apple which is in nasdaq listed stock. how could those prints that were happening earlier -- hold on. let's go to adam shapiro just outside of the nasdaq which is about four blocks out the where we are right now. >> that's right. they have tried to get trading resumed, as you pointed out. we still don't have is the actual explanation of what cost what is now being referred to as the flash freeze. different from the flash crash we had back in 2010. but the question remains, what was the technical issue? the different securities. now there is going to be a great
3:28 pm
deal of money spent not only try to figure out what happened. without any official word if they figured out what caused it even though they have trading resumed. they still have not said why things went down. liz: let's keep everything in perspective. in the grand scheme of things that trading glitch such as this, talking to it some see as a big nasdaq companies to agree, it's not the end of the world. but for the nasdaq, the way that they have handled this. of course there are extraordinarily busy, but not being able to indicate what their records are showing has been frustrating for some ceos who said they just have not heard about anything. it is certainly disconcerting for anybody who owns any of the shares. perhaps does not have access. >> you don't know. you essentially don't know what your prices. one of the issues of we try to get a straight answer out of the new york stock exchange. i'll by producers listening to me. there is ms. pricing in the
3:29 pm
spiders. the s&p 500. liz: do you think there will have to strike those? >> we would like an answer. i will then make amends? there is no way. they went to the last print. the last price on the nasdaq stocks. obviously that was the last price. now we know that was the price that it really should be priced at? liz: some news from the white house. >> we just have a note now from the press secretary telling us that the president's chief of staff has briefed the president. this nasdaq glit whatever you want to call it has gone to the presidential level. we're still waiting on remarks by treasury secretary jack flew out on the west coast. the head of the financial stability oversight council. the headline, president obama briefed on the nasdaq issues. >> that means that they are worried. liz: i agree. as are many very large experienced ceos out there. and they are real experts in the
3:30 pm
spirit we should try and get them on the phone. he has been the guy at the forefront trying to figure out how the "wall street journal" and the new york times had been hacked in the past. coming on the heels of the weird glitch the other day. plus this. it does bring up certain questions. that is, of course, you would have the president involved. >> i would say, if it is a terrorist attack, the nasdaq, it's not a problem. not necessarily a problem with their software. there is cyber terrorism. it sometimes works. i know banks are hit with a lot. the board most of the major tax. if this is a systems issue, i think that is when it becomes a really big problem. it's the second one. liz: get people up to speed once again in case your joining us. half past the hour. trading has resumed after a full three hours of blackout. all stocks were halted after
3:31 pm
what appeared to be in the initial stages they called it equity securities processors, started to show some stress. they called a flash freeze. they sought to erin trades. this became problematic. they started to see some canceling of orders. the electronic platform over at the nasdaq. they looked into this and said, is just hold it right now. obviously could not figure something out. ten minutes after the hour they began to test. now you can see things are beginning to start trading again. it looks column. the sec is closely monitoring the situation. for a full three hours we have what has been called a flash freeze. nicole petallides down on the new york stock exchange were trading was always going on. >> all is going on very smedley. you have the market's looking together. it's interesting. i just saw another flash.
3:32 pm
the nasdaq listed trades. the question is, does that include the s and p spiders? now, we know that you are able to cancel trades for the nasdaq listed stocks. primarily if he did so in the window. but it's interesting to see these headlines. they're canceling the trade. that occurred after 12:23 p.m. but what an afternoon this has been. an exhausting one. certainly one that has left us with a lot of questions. liz: let me give you some names before we go to a break. up 2%. of course a chinese internet stock. dell was flat. these are all names that many people have in their portfolios. we have our own 21st century fox up nearly 2%. stocks have begun to trade once again. one of the biggest of the bay is about a quarter of a percent. apple is down. again, trading has indeed resume
3:33 pm
to shortly around the time that the nasdaq promised it would get trading back up and running. certainly we're still waiting on a reason. closing bell ringing in 28 minutes. continuing coverage of the flash freeze at the nasdaq. plus, were talking to the ceo of a company that won them a list on the nasdaq. a very small company taking on the big dogs like ibm, oracle. a dogfight in the cloud. the investors should pay attention. we have a fox business exclusive state to end. much more on the five trees down of the nasdaq. when i first felt the diabetic nerve pain,
3:34 pm
of course i had no idea what it was. i felt like my feet were going to sleep.
3:35 pm
it progressed from there to burning... to like 1,000 bees that were just stinging my feet. [ female announcer ] it's known that diabetes damages nerves. lyrica is fda approved to treat diabetic nerve pain. lyrica is not for everyone. it may cause rious allergic reactions or suicidal thoughts or actions. tell your doctor right ay if you have these, new or worsening depression, or unusual changes in md or behavior. or swelling, trouble breathing, rash, hives, blisters, changes in eyesight including blurry vision, muscle pain with fever, tired feeling, or skin sores friabetes. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don't ink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem maye more likely to misuse lyrica. having less pain is -- it's a wonderful feeling. [ female announcer ] ask your doctor about lyrica today. it's specific treatment for diabetic nerve pain.
3:36 pm
and this park is the inside of your body. see, the special psyllium fir in metamucil actually gels to trap some carbs to help maintain healthy blood sugar levels. metamucil. 3 amazing benefits in 1 super fiber.
3:37 pm
liz: breaking news, full trading
3:38 pm
at the nasdaq has, indeed, resumed after three hours of an outright halt on all shares. let's take a look though, specifically at the shares of nasdaq omx itself. it is a publicly-traded company, as you can see, and it is falling more than 3% in the wake of what they are describing as a flash freeze. joining us now is an analyst who covers the publicly-traded indexes, he is jonathan cast land. when something like this happens, jonathan, does it make you look differently at an exchange like the nasdaq? >> tough to say. i think at the end of the day we're going to understand that the stocks have actually within trading all day -- been trading all day. liz: how is that possible? because we were discussing this. if, say, for example, apple wasn't trading on the nasdaq, if it's in some other, you know, some exchange-traded fund or a spider, is the print on that
3:39 pm
incorrect? >> well, remember, the major broker dealers, goldman sachs, morgan stanley, actually will facilitate trading and then send the trade to the exchange to print later. so likely it's been a partial trading day on nasdaq and new york, but volume has been facilitated. liz: does it hurt ndaq, the stock itself which is getting hurt, but it could be a bit worse. >> there's no doubt there's collateral damage. these things shouldn't has happ, and it's quite surprising because nasdaq has had the least down time of all the exchanges. so you tend to expect this from new york stock exchange. it's had a legacy bee's nest of exchange-traded systems. nasdaq functions on one trading system, so it's actually quite surprising that nasdaq would go down and not new york. liz: well, nyse is also an exchange that's publicly traded, so is the intercontinental exchange, the two have merged.
3:40 pm
obviously, they'd be talking about how to avoid this, but wait a minute, do we need to get rid of our human open outcry businesses? >> these conversations happen every day, and trading's actually safer, because you actually get more inputs there, more variability in trailing versus what is a pretty technical trading output with technical trading. liz: cme group, of course, is moving higher, they rarely have this kind of trouble. in fact, when lehman was unwinding, they hand a led millions of -- handled millions of trades in a single day in what could have only been described as a slight panic, something going bankrupt like lehman brothers, zero problems. >> well, again, they've embraced technological trading as well -- liz: but they have humans as well. >> they do, about 10%. it's a fail safe mechanism. i don't think cash equity trading will use open outcry because it's been advanced for so long. liz: here comes the nas tack,
3:41 pm
it's trying to come back. what call do you have on the nasdaq? >> i think shares will actually dip down below $30 a share. liz: is that a buying opportunity? >> i don't think so. volume's been in secular decline. we've had four consecutive years of cash equity volume decline, and the market share is actually declining too. the goldman sachs, the morgan stanleys of the world are internalizing more volume, so less is winding up on the exchanges. everything else happens on the over the count markets. liz: bob greifeld, of course, is the ceo. does this hurt his reputation? is he solid on this? is. >> yeah. there's only so much a manager can do, they've done some right things, they're a strong precash flow company, they have a decent dividend, but he can't really wade into the market and stop these trends, so i think they've done what they can, but the stock's cheap, and i think it'll get cheaper, and the collateral damage is that the stock will likely fall. liz: and yet you still have some
3:42 pm
of the sexiest names out there such as tesla, tsla. they could really go anywhere at this point, they stay with the nasdaq. you had l texas instruments leave the new york stock exchange and come to the nasdaq. >> well, for various reasons companies list on different exchanges, there's a cost standpoint, there's a financial reporting standpoint. so for different competitive reasons, companies may choose the new york stock exchange versus nasdaq. i think it's a little bit more intricate to get listings on either one of the two, so it's a little more variable. liz: i always like to say perspective because if you're looking very close at something, it's disconcerting, but let's look at it from about 10,000 feet if we can. >> right. liz: a three-hour outage not a huge deal in the end? >> i don't think at the end of the day, we'll have some clarity by friday, and i think the indices will continue trading, and tomorrow it'll be business as usual. liz: jonathan is the analyst who covers the exchanges, can you just stick with us for a minute? we need to take a quick commercial break, but stocks
3:43 pm
trading once again through the nasdaq. we've got the closing bell ringing in 18 minutes. when we come back, we're going to get the latest on the aftermath of today's flash freeze at the nasdaq as trading gets underway again following today's -- you could call it an extraordinary trading halt of all 2,000-plus stocks that list on the nasdaq. adam shapiro standing by outside the nasdaq market site right in times square. he's got complete details. he'll join us again when we return. don't go away. you know throughout history, folks have suffered from frequent heartburn. but getting heartbu and then treating day after day is a thing of the past. block the acid with prilec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. zero heartburn.
3:44 pm
[ male announcer ] one pill each morning. everybody has different ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. find out why 9 out of 10your large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully beforenvesting. risk includes possible loss of principal. if you have high cholesterol, here's some information that may be worth looking into. in a cnical trial versus lipitor, crestor got more high-risk patients' bad cholesterol to a goal of under 100. getting to goal is important, especially if you have high cholesterol plus any of these risk factors because you could be at increased risk for plaque buildup in your arteries over time. and that's why when diet and exercise alone aren't enough to lower cholesterol i prescribe crtor.
3:45 pm
[ female announr ] crestor is not right for everyone. like people with liver disease or women who are nursing, pregnant or may become pregnant. tell your doctor about other medicines yore taking. call your doctor right away if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. these could be signs of rare but serious side effects. is your cholesterol at goal? ask your doctor about crestor. [ female announcer ] if you can't afford your medication, astrazeneca may be able to help.
3:46 pm
3:47 pm
liz: right now at hewlett-packard, down $3 after coming in with earnings after the bell that really disappointed. that's why it's down about 12%. it was their enterprise business, their corporate business that was a big disappointment, just want to let you know, though, that the drag
3:48 pm
on the dow is about 24 points. so without hewlett-packard if you were able to halt that stock, well, the dow would be up about 100 points. right now at 14,976, still above that key 15,000 level. we want to get back to the nasdaq story that earlier today just shortly after 12:15 p.m. eastern time some very bizarre glitches in trading started to happen, and their electronic side, what's called the rca, started to shut down trading in advance of what could have been much worse, certainly, and then nasdaq decided to halt everything; you can see the big flat line through three full hours. it appears to be just fine at the the moment. let's get back to our team coverage. adam shapiro on 43rd and seventh avenue. adam? >> reporter: and, again, you bring up this issue of arca, you know, there was trading problems at arca over at the new york stock exchange on their
3:49 pm
electronic platform an hour before nasdaq got shut down, and the first person who brought this to my attention was frederick layton, former nsa member, he worked for the air force, he's a cybersecurity expert. and he and i had a discussion in which he said you can't rule out, you have to look at the possibility of someone from the outside trying to create some kind of mischief, perhaps a hacker, because of the anomalies that took place an hour over at new york stock exchange through arca and then what happened at nasdaq an hour later. again, it was just the bid and ask that you couldn't get, you couldn't get the realtime pricing which created a problem, but it halted trading on nasdaq-listed stocks for almost three hours. frederick leighton is saying don't rule out those types of possibilities when you're trying to figure out what truly happened. make sure your security is fail safe before you say this is just a technical issue. again, have to reiterate, nasdaq has remained tight-lipped, they will not indicate if they
3:50 pm
actually know what they're doing and what went wrong. liz: well, good for them if they are not sure, so thank you, nasdaq, we get that. but there should at least be a little bit more communication, i would think, at point. i'm talking to a lot of nasdaq-listed stock ceos, and they are not happy. they have told me more than a dozen of them telling me, they don't want to go on the record, and i understand that, but they're saying why are we in the dark at this point? nicole petallides is on the floor of the new york stock exchange. you just heard adam articulate the trading vagaries of what's going on, but just clarify once again for our viewers who watch the dow jones industrials but nasdaq stocks within it such as microsoft, cisco and intel. >> reporter: right. there's so much that went on today that left so many questions the dow jones industrials, comprised of 30 names. three of those names are nasdaq-traded stocks. so the dow managed to continue to trade. however, those three stocks finish which are weighted within
3:51 pm
the dow jones industrials -- remained flat during that time. now that everything is back and resumed, we've actually moved to session highs on the dow jones industrials where you saw the dow up 92 points. but the question is, what happened at the nasdaq? traders wondering, why did this happen at all? did any firms end up committing capital to try and execute orders for their great customers elsewhere? ben willis is making that point, how about if you're ubs or bank of america, merrill lynch? customers still need to buy apple, did those big firms commit their capital and try and do it elsewhere? did they get the best price? did they get caught? this is what people are going to look at. now trading is beautiful, right? everything opened calmly, you see most people seem to be feeling pretty good, the markets moved to session highs, but the question still remains: what happened, and did anybody get caught on the wrong side of these trades? liz: jonathan actually covers the exchanges themselves as individual stocks. and we were talking earlier where you said this will
3:52 pm
probably, and it's not a good thing, make the nasdaq stock, ndaq, a little bit cheaper. >> right. i think that's the real collateral damage. at the end of the day, the systems today had a rough day. we won't know until some undisclosed amount of time exactly what happened. you have dark pool trading systems which handle off-exchange trading, dealers which funnel volume into the exchanges, so it could have been a number of problems, but at the end of day, the systems failed at nasdaq. liz: do you happen to know if yahoo!, can they trade on dark pools? >> they'll trade away in a very diluted session, so there is somely quid dated -- somely liquidity. big orders can go off. you won't see the print on nasdaq because systems aren't up, but there is liquidity which is why you saw the dow and the s&p 500 find a composite today.
3:53 pm
liz: president obama has been apprised of the situation. fox business has also confirmed that the fbi is aware of it as well as the securities and exchange commission. rich edson is right there in washington d.c. it's not very often that the folks inside the beltway are focusing on what we do on wall street, at least lately. they're looking at all the political ramifications of other things, but right now looks like this is the story, rich. >> reporter: right. and this demonstrates the seriousness of the issue, when you've got the president involved. they're on a bus trip right now in new york state and pennsylvania and making it a point to bring it up to the press that the chief of staff did brief president obama on this issue, reaching the highest levels of the government. and beneath the president you've got the treasury secretary, the head of the fsoc looking into this, he's on the west coast, the sec saying they convened a conference call as soon as they heard this had happened with the markets themselves and were on the call with them while they tried to get back up and running again. so this is running throughout the government right now.
3:54 pm
the question ask when we find out exactly what the cause of this is. cybersecurity, when it comes to either ip theft or whether it comes to the security of the nation's infrastructure, it's been a major issue in washington. it's percolated even more over the past year, and we can expect if it's some type of issue, this wasn't just a glitch of the software, if there's a wad actor here -- bad actor here, this is something congress is going to want to get involved in and yet another incident that will have folks in d.c. at least calling for more intervention by the federal government on cybersecurity. liz: that's what i'm hearing from a lot of my silicon valley guys. look, this is what they do, but they do believe, very much so, that there may be something nefarious, although we just don't know yet. as soon as the nasdaq starts talking, we will let you know what they say. adam shapiro still remains right there at the nasdaq moments, our thanks to jonathan, we appreciate you being here, nicole petallides also standing by, rich edson working the d.c. angle. we've got that closing bell
3:55 pm
ringing in nearly six minutes, but you see green on the screen. it is a rally today. we do have full team coverage of all the stocks that are trading. nasdaq back up and running, fox business never stopped. ♪ ♪ [ male announcer ] how do you get your boce?
3:56 pm
i'm, likike, totally not down with change. but i had to change to bounce dryer bars. one bar freshens more loads than these two bottles. i am so gonna tell everyone. [ male announcer ] how do you get your bounce? [ woman ] time for change!
3:57 pm
[ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission.
3:58 pm
[ coyote howls ] how about no more surprises? now you can get all the online trading tools u need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. liz: we have the nasdaq trading once again after a three-hour blackout that they are calling the flash freeze, but as you can see on the lower third here, we do have a rally going on right now with both the nasdaq and the dow jones industrials movvng higher. we want to go right now to nicole petallides, ashley webster is also joining me in place of david asman. alaska ash what a day. >> reporter: going into the closing bell, we didn't see the nasdaq trade for three hours, we're back in action.
3:59 pm
the dow jones industrials in this last half hour actually moved to session highs, so it's a relief that we are trading once again, but the question still remains: what happened? back to you. ashley: well, what happened, indeed? interesting, what's the general sense you got, nicole, from the traders there at the stock exchange? there were some people, some traders that said how come trading was stopped on our floor as well? did the nasdaq have the authority to do that? >> reporter: look, you have to, you have to play nicely in the sand box. traders here on wall street quickly noted that right here at the new york stock exchange, which also trades some nasdaq stocks -- ashley: right. >> reporter: did not trade those here, and then this way they can try and figure out what the real problem was. ultimately, you might not even get the right prices. liz: well, that is the question. and so now as we look, we cannot ignore some of the other stories, and, of course, hewlett-packard is the big one,
4:00 pm
it is a big drag on the dow even though the dow is moving higher. disappointed with earnings numbers yesterday, specifically the enterprise business not looking nearly as strong. here come the closing bells. keep your eye on the bottom picture there. that's the nasdaq. [laughter] i'm sorry, what? somebody talking to me? okay. as you can see, everything is running. okay. here's where your money is at the moment. ashley: finally. liz: dow jones industrials up 67 points, but it is the nasdaq which, of course, actually had just completely stopped shortly after 12:15 eastern time. ashley: the markets remained calm and carried on, as the saying goes, and overall an interesting day. perhaps the best time it could happen would be a slow week or a slow day in august. nevertheless, we want to know what happened, and we haven't heard that yet from the folks at the nasdaq. liz: qualify at -- "after the bell" starts right now.


info Stream Only

Uploaded by TV Archive on